On Tuesday, the Hang Seng Index rose 2.6% to 15,353.98, its biggest single-day gain in more than two months and rebounding from its lowest since October 2022. The Hang Seng High-Tech Index rose 3.7%, and the Shanghai Composite Index rose. The stock has risen 0.5% from near a four-year low.
Elsewhere, HSBC rose 1.2% to HK$59.20. China’s top financial institutions ICBC and Construction Bank rose 2% to HK$3.61 and HK$4.41, respectively. Insurer AIA Group rose 3.6% to HK$61.25.
According to a report by Xinhua News Agency, after assuming the chairmanship, Premier Li urged the authorities to “thoroughly improve the quality and investment value of listed companies, increase the entry of medium- to long-term funds into the market, and enhance the inherent stability of the market. ” he asked. State Council meeting held in Beijing on Monday.
Chinese Premier Li Qiang orders measures to calm markets after trillion-dollar collapse
Chinese Premier Li Qiang orders measures to calm markets after trillion-dollar collapse
“This is a much stronger announcement than anything we’ve seen in recent months,” Timothy Mo, chief Asia-Pacific equities strategist at Goldman Sachs, said at a news conference in Hong Kong on Tuesday. “The market has received this favorably, but there may be some reservations as the details have not been announced yet. We still need to see what the details are.”
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China’s GDP: Beijing’s long to-do list for economic growth in 2024
China’s GDP: Beijing’s long to-do list for economic growth in 2024
“We are hopeful that policymakers are willing to take some action to stem the current economic downturn and restore confidence,” Helen Chao, chief China economist at BofA Global Research, said at a press conference on Tuesday. “We are sending a lot of money,” he said. “We think it’s going to happen anyway.”
Stock indexes in Hong Kong, Shanghai and Shenzhen fell to new lows on Monday. More than $1 trillion in market capitalization has been wiped out from Chinese stocks listed in mainland China and Hong Kong this year alone, according to Bloomberg data, an amount equal to all of the losses in 2023.
Over the past six months, global funds have withdrawn approximately US$30 billion from domestically listed stocks through Stock Connect links. Some of the capital is helping fuel the rise in India’s stock prices. The total amount of stocks listed in the South Asian country reached US$4.33 trillion on January 22, surpassing Hong Kong’s US$4.29 trillion, according to Bloomberg data.
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‘Big mistake’: Singapore hedge fund shuts down after wrong bets on China and Japan
“It’s too early to celebrate any solid improvement in sentiment, especially as concerns about policy risks and the growth story continue,” said Gary Ng, senior economist at Natixis. “Until stimulus is considered, the market clearly has not ruled out the possibility of a dead cat bounce.”
Other major Asian markets rose. Australia’s S&P/ASX 200 rose 0.5% and South Korea’s Kospi rose 0.6%. Japan’s Nikkei Stock Average fell 0.1%.
Additional reporting by Yulu Ao